SARB revises 2025 growth forecast up marginally by 1.3%

The South African Reserve Bank (SARB) has revised its 2025 growth forecast up marginally by 1.3% amid renewed optimism about the country’s stagnant economy.

Growth was previously forecasted at 1.2%.

The central bank says growth is looking steadier than last year.

It said the second-quarter outcome surprised on the upside, and the third-quarter indicators are looking broadly positive.

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The latest revision follows the final meeting of the central bank’s Monetary Policy Committee on Thursday, where the repo rate was lowered by 25 basis points to 6.75%.

SARB governor Lesetja Kganyago explained: “We continue to see growth nearing 2% over the forecast horizon. Employment has also been rising.”

While it’s been a turbulent year for the global economy, Kganyago said it’s been better than expected for emerging markets.

“This is due to stronger capital flows and a weaker dollar, as well as favourable terms of trade.”

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